Singapore gas oil swaps prices ticked higher at midday on Friday but fuel oil failed to budge as the region stayed awash in supply, traders said.
Brokers quoted August gas oil paper prices at $44.90/$45.10 a barrel, above $44.85 on Thursday.
August gas oil's premium to September widened by five cents to a 30 cent spread, helped by expectations for tighter supply in the prompt month.
The regrade, the price spread between jet-kerosene and gas oil, widened in favour of jet-kerosene by 10 cents to $3.10 for August.
"Fundamentally kerosene has been well offered while gas oil has been well bid. There's no reason for a $3 regrade but the banks are buying," said a trader in Singapore. Gas oil's crack spread to benchmark Middle East Dubai crude oil widened to $10.37 a barrel, from $10.20 on Thursday.
August fuel oil paper prices were pegged at $185 a tonne, flat from Thursday but weaker crude oil prices helped narrow the Dubai crack spread to a discount of $6.15 a barrel, from minus $6.25 on Thursday.
Vietnam's Petrolimex has bought 159,000 tonnes of high sulphur fuel oil in its third quarter tender but is in negotiations for more supply, traders said.
The firm requested 324,000 tonnes in its tender.
NYMEX US light crude futures for August delivery were last down one cent at $40.76 a barrel at 0422 GMT after losing 20 cents to $40.77 a barrel in New York on Thursday.
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